Rationing May Be Used to Give an Incentive to Management

question 131

Multiple Choice

Rationing may be used to give an incentive to management to maximize the value of the firm

• A) True
• B) False

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Definitions:

Operational Risk

A measure of a firm’s inability to document the work remote employees do, describe the different situations they might face, and direct their responses in each scenario.

Outsourcing Vendor

A third-party company that provides services or performs tasks that a company might otherwise have done in-house, often to save costs or access specialized expertise.

Insourcing

The practice of using an organization's internal resources to complete tasks or projects that could be outsourced to external providers.

Outsourcing

The business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees.